Wall Street stalls as China tariffs loom

Major equity indexes in the US started the day sharply higher as the latest headlines surrounding the US-China trade dispute revived hopes of the conflict coming to an end before escalating further and provided a boost to risk-sensitive stocks.

The Dow Jones Industrial Average climbed 326.15 points, or 1.3%, to 26,362.25.

The S&P 500 edged up 1.88 points, or 0.1%, to 2,926.46.

The Nasdaq fell 10.51 points, or 0.1%, to 7,962.88.

Tom Cahill of Ventura Wealth Management told AFP stocks had fallen from their session highs as traders exercised caution or cashed in after the gains scored during the week. Both companies reported quarterly profits that easily beat analysts' forecasts. A published report noted that China's commerce ministry said it is discussing the next round of in-person trade negotiations with the U.S.to be held next month.

At 8:44 a.m. ET, Dow e-minis 1YMcv1 were up 146 points, or 0.55%.

China's commerce ministry said both sides are discussing the next round of talks scheduled in September and hoped United States officials could cancel the planned additional tariffs to avoid an escalation, boosting sentiment and driving global stocks higher.

Shares of widely-acknowledged trade barometers Caterpillar and Boeing also rallied almost 1.2 per cent and over 0.5 per cent respectively.

Trading turned volatile in August as investors anxious that the escalating trade war between the USA and China and slowing global economy could tip the US into a recession.

Markets are also bracing for a new round of USA tariffs on some Chinese goods that come into effect on Sunday and the technology sector was the biggest weight on the S&P with a 0.3% loss.

In an interview with Bloomberg, Treasury Secretary Steven Mnuchin said talks with China are ongoing and are expected to continue in Washington, though he did not specify when.

The S&P 500 is up 417.73 points, or 16.7%.

The Trump administration on Wednesday made official its additional 5 per cent tariff on $300 billion in Chinese imports and set collection dates of September 1 and December 15, prompting several hundreds of USA companies to warn of price hikes.

At the same time, consumer spending shot up to an annual rate of 4.7% in the second quarter, the best showing since the final quarter of 2014.

Investors are also bracing for a new round of USA tariffs on some Chinese goods that would come into effect on Sunday.

The S&P 500 gained 79.35 points, or 2.8%. The company lowered its revenue outlook for the year, citing the expected impact of USA tariffs on Chinese imports.

Shares of Apple and Boeing, both exposed to the Chinese market, both rose about one per cent on the news. Heating oil declined 3 cents to $1.83 per gallon.

Shares in SeaChange International Inc (NASDAQ:) rose to 52-week highs; rising 20.21% or 0.39 to 2.32.

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